Final answer:
The Internet supports four strategic business directions: Market Penetration, Product Development, Diversification, and Market Development. These strategies utilize the global reach of the Internet, which allows consumers and businesses to transact worldwide, promoting both B2C and B2B activities.
Step-by-step explanation:
The Internet can be utilized to achieve four strategic directions in business: Market Penetration, Product Development, Diversification, and Market Development. These are part of Ansoff's Matrix, a marketing planning model that helps a business determine its product and market growth strategy. Market Penetration involves selling more of the existing products to the current market.
Product Development is about creating new products for the existing markets. Diversification entails offering new products to new markets and is the most risky strategy. Lastly, Market Development is the expansion of the existing product into new markets.
These strategies leverage the global reach of the Internet, enabling consumers and businesses to engage in transactions across borders with ease. For instance, with the improvement in communications technologies, customers can purchase items globally, increasing competition for local businesses. On the flip side, businesses can expand their potential market beyond their local economy, exploring business-to-business (B2B) and business-to-consumer (B2C) opportunities worldwide.